Energy Consumption, Capital Investment and Environmental Degradation: The African Experience

Ekundayo Mesagan and Chidi Olunkwa ()
Additional contact information
Chidi Olunkwa: University of Lagos, Nigeria

No 20/022, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: This study investigates the effects of energy consumption and capital investment on environmental degradation in selected African countries between 1981 and 2017 using panel cointegration approaches. The Fully Modified and the Dynamic Ordinary Least Squares results affirm that energy consumption positively affects carbon emissions in Algeria, Nigeria, Morocco, and in the panel. At the same time, both also confirm that capital investment positively and significantly impacts carbon emissions in the region. Again, results show that capital investment augments energy use to reduce carbon emissions in Africa significantly. This implies that capital investment can provide needed impetus to reduce environmental degradation in the continent. The study, therefore, recommends that African countries should focus on energy conservation policies to reduce the adverse effect of energy use on carbon emissions.

Keywords: Electricity Consumption; Capital investment; Environmental Degradation; Africa (search for similar items in EconPapers)
JEL-codes: Q40 Q42 Q43 Q54 Q57 (search for similar items in EconPapers)
Pages: 18
Date: 2020-01
New Economics Papers: this item is included in nep-afr, nep-agr, nep-ene, nep-env and nep-reg
References: Add references at CitEc
Citations:

Forthcoming in: Forum Scientiae Oeconomia

Downloads: (external link)
http://www.afridev.org/RePEc/agd/agd-wpaper/Energy ... ntal-Degradation.pdf Revised version, 2020 (application/pdf)

Related works:
Working Paper: Energy Consumption, Capital Investment and Environmental Degradation: The African Experience (2020)
Working Paper: Energy Consumption, Capital Investment and Environmental Degradation: The African Experience (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agd:wpaper:20/022

Access Statistics for this paper

More papers in Working Papers of the African Governance and Development Institute. from African Governance and Development Institute. Contact information at EDIRC.
Bibliographic data for series maintained by Asongu Simplice ().